This has always been a topic of discussion. Why are investors inclined towards startups founded by entrepreneurs from IITs and IIMs? And why are there so few women in tech? And this isn’t just in India; it’s a globally observed trend.
We did a survey back in 2014, in which we looked at all the deals in India over the previous three years to see if we could find a co-relation. The results were clear: a third of the funded companies had founders from pedigree institutes. The questions have remained and very recently, a tweet by Instamojo founder Sampad Swain fuelled a long winded discussion about the same.
This is one topic which almost no one talks about -- how it's still excruciatingly painful to raise capital for non-IITs/IIMs?
— Sampad Swain (@sampad) June 27, 2015
In our previous study, we looked at deals in early stage start-ups, but this time around, we decided to look at deals of about $5 million. We looked at the last 25 deals in the past couple of months, and noted that the numbers were even more skewed. 60% of the 25 deals are to founders that hail from IITs and IIMs. And only two of the 25 companies have a woman co-founder.
Some of the key trends about this study are:
There are various reasons for this which can be pointed out:
In spite of these reasons, the skew is very strong and the fact that there are hardly any women is disturbing. The skew is only getting wider. So it is about time the issues at the bottom of these trends are tackled. We, at YourStory, started HerStory for this reason and we’d appreciate more dialogue on the same line. Do drop in your comments and also links to any research that might have been carried out in this direction.